Digital Currency SOV

Digital Currency SOV

Question: Which country announced to release its digital currency named SOV in 2019?
(a) Seychelles
(b) Paraguay
(c) Nicaragua
(d) Marshall Islands
Answer: (d)
Related facts:

  • The Marshall Islands, an island country and associated state of United States is planning to launch its own digital currency in 2019.
  • The currency will be known as SOV (Sovereign) whose legal tender status has been approved by the Parliament of the country.
  • This will be circulated as a legal tender along with US Dollar, the official currency of Marshall Islands.
  • Israel-based company Neema is partnering with the Marshall Islands government to develop this currency. They are working through a huge amount of US regulatory concerns as well as the technological and logistical side of issuing the SOV using blockchain technology.
  • SOV will be issued to the public through an initial coin offering. It is a financing strategy very prevalent among startups for raising funds for their projects.
  • Marshall Islands passed legislation in 2018 for developing a digital currency as legal tender. This was criticized by the International Monetary Fund, the U.S. Treasury Department and bank officials in the Marshall Islands for negative impacts on existing banks and can also lead to massive money laundering abuses as reported in digital currencies.

Marshall Islands:

  • Officially known as The Republic of Marshall Islands (RMI), Marshall Island is a small island with a population of nearly 55,000 is situated in Central Pacific Ocean. The country is part of the larger island group of Micronesia.
  • Majuro is the capital of Marshall Islands. The President of Marshall Islands is Hilda Heine, she the eighth President of the country. US Dollar is the official currency.

Links:

https://www.reuters.com/article/us-crypto-currencies-marshall-islands/marshall-islands-to-issue-own-sovereign-cryptocurrency-idUSKCN1GC2UD

https://www.business-standard.com/article/pti-stories/marshall-islands-to-launch-digital-currency-this-year-119030900117_1.html

https://en.wikipedia.org/wiki/Marshall_Islands